Stoke-on-Trent has been labelled the new UK buy to let hotspot according to new research.
Analysis of data from Home.co.uk conducted by property crowdfunding platform Property Partner found that Stoke-on-Trent, situated in Staffordshire, offers landlords with the best returns and affordability. An investor would need a deposit of just £29,397 to secure the average buy to let property in the area on a loan-to-value of 75 per cent. The average property price in the town is £117,586.
Oldham was ranked in second place, whilst Liverpool came closely behind. Rounding off the top five were the cities of Leeds and Middleborough.
Evident amongst the results was a strong North-South divide, with all of the top ten property hotspots located in the north. In contrast, the entirety of the bottom ten were found to be in the south. Landlords in Poole were the most significantly challenged to find a strong profit, with the annual rental yield at just 1.94 per cent, followed by Central London and then Sevenoaks.
Property Partner’s study ranked Britain’s 100 major towns and cities. The survey took into account the average income, average property price and average rent in each area considered, before ordering them in order to see which locations offered the best deal for buy to let investors.
Founder of Property Partner, Dan Gandesha explained that areas with lower demand can often offer hidden gems for savvy investors. He said: ‘We have always been at pains to point out to investors that prime locations such as Kensington and Chelsea can offer some of the lowest yields available, because prices have raced ahead while rents have failed to keep pace. It just goes to show, you shouldn’t always follow the crowd and the right investment could be on your doorstep where there is far less overall demand.’